---
title: O.C.G.A. § 14-3-740. “Derivative proceeding” defined.
collection: code
id: 14-3-740
cite_as: O.C.G.A. § 14-3-740 (2025)
canonical_url: https://georgiacommons.org/code/14-3-740
md_url: https://georgiacommons.org/code/14-3-740.md
text_url: https://georgiacommons.org/code/14-3-740/text
source_url: https://www.legis.ga.gov/api/document/docs/default-source/joint-features-document-library/t14-(v12)-pdf.pdf?sfvrsn=82868bd8_0#page=100
date: 2025
status: active
corpus_version: 2025-supplement-89aa39ab3c68
license: CC0-1.0
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
up: https://georgiacommons.org/code/14-3.md
previous: https://georgiacommons.org/code/14-3-730.md
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index: https://georgiacommons.org/code/index.md
version: the only printed version
in_force: true
current_through: Including Acts of the 2025 Regular Session of the General Assembly
heading_path: CORPORATIONS, PARTNERSHIPS, AND ASSOCIATIONS / NONPROFIT CORPORATIONS / DERIVATIVE PROCEEDINGS
---

# O.C.G.A. § 14-3-740. “Derivative proceeding” defined.

As used in this article, the term“derivative proceeding” means a civil suit in the right of a domestic corporation or, to the extent provided in Code Section 14-3-747, in the right of a foreign corporation.

## History

Code 1981, § 14-3-740, enacted by Ga. L. 1991, p. 465, § 1; Ga. L. 2023, p. 419, § 1-1/SB 148, effective July 1, 2023.

## Amendments

The 2023 amendment, effective July 1, 2023, rewrote this Code section, which previously read: “As used in this part, the term:

“(1) ‘Derivative proceeding’ means a civil suit in the right of a domestic corporation or, to the extent provided in Code Section 14-3-747, in the right of a foreign corporation.

“(2) ‘Member’ includes those who are members under Code Section 14-3-140, as well as any person who is entitled to some portion of the corporation’s property upon dissolution, and any person or class of persons specifically designated in the corporation’s bylaws or articles of incorporation as having standing to bring a derivative proceeding.”